Consulting

The global conditions for efficient and effective risk management were redesigned by the World Customs Organization (WCO) due to the international security situation.

The so-called “Authorised Economic Operator” holds a special status from the perspective of customs authorities. Companies with this status are considered to be particularly reliable and trustworthy. In return, companies with this status can take advantage of special customs clearance benefits.

If you have any further questions please do not hesitate to contact me.

Customs authorisations are a sophisticated topic. They serve as a facilitation but require special attention and a certain amount of prior knowledge.

But what exactly are customs authorisations about?

Customs authorisations are special permits for companies. If you as an independent business owner have such an authorisation, you benefit from simplifications compared to other customs operators.

There are different types of customs authorisations, such as the AEO (Authorised Economic Operator), which exists in the versions C (customs simplifications) and S (security). There are also combined authorisations (AEO C + S).

The AEO is the basic authorisation and a prerequisite for most customs simplifications.

As a rule, an application including a self-assessment questionnaire must be completed in advance for each authorisation. The self-assessment questionnaire is relevant for all authorisations and must be adapted in case of extensions. The questionnaire must then be submitted to the responsible customs offices.

Authorisation requirements:
The fulfilment of certain requirements is necessary with union residency being the basic requirement. The applicant must ensure the proper implementation of the customs procedure and comply with all legal regulations, including a system-based handling of customs procedures as well as a satisfactory accounting system and proof of the company’s solvency.

Economic requirements:
This authorisation is required for the appropriate customs procedure for which the simplification is applied for.

Material requirements:
These include, among other things, provisions on the identity of the goods, i.e. condition and proof of the goods’ status.

Once an authorisation has been granted, monitoring is required to ensure compliance with the conditions. For smaller companies, this is often straightforward while larger companies with many locations need a strict plan for the management and leadership to document in order to keep track of the progress.

I offer customized support for the implementation of customs processes and internal control systems (risk management) in your company. In doing so, I will take into account your individual needs and specific circumstances.

If you have any further questions or need support, please do not hesitate to contact me.

If you are importing goods from a non-EU area and would like to store them for a limited time duty-free, tax-free, and free of trade policy measures, a bonded warehouse is the right solution.

I would be happy to advise you on applying for permit for a customs warehouse at the main customs office and on handling the customs warehouse.

Do you need help with the often very challenging customs value calculation?

A simplified calculation of the customs value looks as follows:

Customs value = purchase price + additions – deductions.

The actual purchase price of the imported goods serves as the starting point for the calculation. Additions, such as packaging costs or sales commissions, are added to the purchase price. The purchase price is reduced accordingly by the deductions, such as assembly costs after importing into the EU.

What appears to be simple at first glance usually turns out to be quite complicated in practice. If the calculation is emerges as incorrect, this can have both financial and criminal consequences.

The customs value regulations in the Union Customs Code (UCC) provide for six methods of customs determination. The requirements for each method are precisely defined. The following method may only be applied if the customs value could not be determined with the previous method:

• Transaction value for the imported goods
• Transaction value of identical goods
• Transaction value of similar goods
• Deductive method
• Method of the calculated value
• Concluding method

I would be happy to advise you on all questions regarding customs value law and help you calculate the customs value in order to protect you from problems with the customs authority.

If you import or export goods and commodities from a third country, they must be treated under customs law in accordance with customs procedures.

The choice of the correct customs procedure is of immense importance as it determines the duties to be paid and the customs status of the goods. There are different procedures depending on the type of goods, shipment and tax regulations.

Violations can be punished as an administrative offense.

Import

The importer needs to check in advance whether a prior notification or prior authorisation for import is required by the customs authorities.

The registration can be effected via ATLAS (Automated Tariff and Local Customs Processing System).

During the customs procedure, the responsible authority accepts the goods and checks the registration and the necessary documents. The ATLAS system usually calculates the customs duties and import taxes automatically.

Export

In this case, one distinguishes between one-stage and two-stage customs procedures.

One-stage procedures usually apply for small shipments (goods value up to 3,000 EUR). The exporter can hand over the goods directly at the exit customs office and submit the export declaration electronically.

With the two-stage registration, the registration for the customs procedure also takes place in the first stage. After registration, the responsible export customs office takes over the goods and checks them. If the customs office releases the goods, they will be transferred to the export procedure and the corresponding accompanying documents are issued.

The registration can be done via ATLAS (Automated Tariff and Local Customs Processing System).

If you need help implementing the correct customs procedure, please do not hesitate to contact me.

In the case of country-specific export control, it is necessary to check whether the target country is affected by country embargoes, i.e. economic sanctions.

There are three types of embargoes:

• Total embargo: no trade may be conducted with a country.
• Partial embargo: no trade may be conducted with a country in connection with certain products.
• No armaments may be delivered to a country.

On the BAFA (Federal Office for Economic Affairs and Export Control) website you can find information on the countries affected by current embargo measures.

If you have any questions about country-specific controls, please do not hesitate to contact me.

Product-specific export control must always be carried out for armaments and so-called dual-use goods.

These goods lists are subject to constant changes and must always be taken into account by companies.

These goods require an export licence.

If you have got any questions about product-specific controls, please do not hesitate to contact me.

For person-specific export control, you must check your business partners.

Restrictive measures can apply to individual persons, institutions, or organisations. These sanctions applied to specific persons, usually financial sanctions, are imposed, for example to combat terrorism.

If your business partner is affected by sanctions, no funds or other economic resources may be provided to this person. A verification of the persons concerned can be carried out via the financial sanctions list of the Federal Justice Portal or the states.

If you have got any questions about sanctions applied to specific persons, please do not hesitate to contact me.

In the case of use-related export control, it needs to be checked whether the exported product is subject to a “critical use”.

This measure is applied to single-use goods (non-sensitive, civil goods) that cannot be classified as dual-use goods.

These are civil goods that have not been listed but are intended for a military end-use and for export to a country that is, for example, affected by an arms embargo.

Such exports are subject to licensing.

If you have got any questions about use-related controls, please do not hesitate to contact me.

Many companies fear US sanctions in case of violating US export control laws.

According to the de minimis rule, a product is a US product if it was manufactured from US components above the de minimis threshold. If a German product comprises components of US origin, an additional control will be required.

Companies must check whether US products would have been subject to authorisation if they had been supplied in an unassembled condition.

Ultimately, the product, destination country, and end-use determine whether a US export permit is required.

If you have got any questions about US re-export controls, please do not hesitate to contact me.

In many countries, proof of the trade measures, i.e., non-preferential origin of a product, is a mandatory requirement for the import of a product.

The determination of origin is clearly regulated and is verified for export in Germany by a certificate of origin.

The product is allocated to the country where it last was processed.

Certificates of origin are issued by the Chamber of Industry and Commerce, the Chamber of Crafts, or the Agricultural Chambers.

I will be happy to assist you with any queries you may have about verifying the origin of your products.

The European Union (EU) has concluded preference and free trade agreements with many countries on preferential origin. The aim of these agreements is to favour goods with preferential origin.

The preferential tariff treatment depends on a documented preferential origin or the customs status (free trade preference) of the products. The determination of the preferential origin and the issuance of the various preference proofs (such as supplier declarations, origin declarations, and EUR.1 movement certificates) are essential components.

To determine the conditions of the respective free trade agreement, all master data must be correctly recorded (e.g., customs tariff numbers). In addition, efficient supplier declaration management is required. The trade policy origin is an important tool in times of increasing protectionism to align your supply chain efficiently in a cost-neutral way.

If you have got any questions about preferential origin, please do not hesitate to contact me.

The topic “Made in …” is globally keeping busy more and more companies, as additional import duties may arise due to false declarations of origin.

Responsibility of the product labelling “Made in …” is borne by the manufacturer. In Germany, there is no specific institution that confirms the correctness of this marking. Nevertheless, many legal criteria need to be observed, as a judicial review can be effected at any time.

I am happy to assist you in implementing an efficient system for the efficient representation of the “Made in” origin.